Atlantia SpA Q4 2019 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Nicol= Pessina - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : Yes. I had a first question on the negotiations for a settlement with the government. I'd like to know if you can provide any detail on the negotiations, on the timing and maybe which kind of feedback you received, if any, from your proposal. Second question on the potential sale of the stake of ASPI, and I wonder if this is related to the settlement with the government as suggested by the press or if it's a different story, and if you plan to retain the control of ASPI or you're open to sell more than 50%. And last question on the capital rotation strategy. Would you feel comfortable in adding more debt to the current amount you already have today? And if so, until what extent you would feel comfortable?

Question: Stephanie Fabienne D'Ath - RBC Capital Markets, Research Division - Analyst : The first one is regarding your sensitivity analysis. So assuming 30% decline in motorway and 50% decline in airport passengers leading to a EUR 3 billion revenue loss, can you please elaborate a little bit how that translates into EBITDA? And I know that on Slide 11, you have given us a little bit more detail on the potential EUR 2 billion cash flow loss. But I was curious to understand what your assumptions were in terms of increased OpEx -- not increased, but to which extent the government support for technical employment will allow you to not have a very strong operating deleverage? And my second question, please, is regarding your stake in Getlink. Could you please let us know what your strategy is and if you were looking to raise some cash, if you are still committed long term to that stake or if you could consider selling down?

Question: Stefano Gamberini - Equita SIM S.p.A., Research Division - Analyst : Three quick questions, if I may. First of all, regarding this new RAB-based tariff system, you challenged, at the beginning, this system. Could you help us to understand what are the main differences between what the regulator introduced and this proposal that you submitted to the government in term of RAB and in term of also tariff system? What I mean is versus the current tariff system, do you see significant differences in term of tariff growth in the coming year, considering your CapEx plan? The second question, still on this topic. All the CapEx that we see at page -- the Slide #7 and also the maintenance costs are now remunerated with the new tariff system, excluding the EUR 1.5 billion you said at the beginning of this part of the compensation you submitted to the government. Then the second question, should the agreement with the government avoid any future risk from the investigation and the trial on ASPI breach? What I mean is now at the end of this agreement that you expected that no risk are in the future regarding the -- your concession from the collapse of Genoa and the inquiry on that? And the very last question regarding -- would this agreement with the government on ASPI the assets to upgrade ASPI and Atlantia, that grading to investment grade? Or do you need some other steps in order to come back to the investment grade that [the same] is your main target right now?

Question: Stefano Gamberini - Equita SIM S.p.A., Research Division - Analyst : And regarding the investment grade, once you reach an agreement with the government, what do you expect?

Question: Marcin Karol Wojtal - BofA Securities, Research Division - Analyst : First, can you comment on your stake in Hochtief? What is your level of commitment to this company? And maybe more broadly, you have been mentioning asset rotation. Is there any rotation in the pipeline for any of your international assets, perhaps including any of the assets of Abertis? Then question #2 is on Autostrade. Can you clarify, in your submission for the new economic plan, are you requesting an extension of Autostrade concession term? Or perhaps you're asking for a terminal value to be recognized at the end of the concession? And lastly, this is just a clarification. Can you just clarify, would you consider going below 50% stake in Autostrade at some point? Or you want to keep it above 50%? Just to be clear.

Question: Nicol= Pessina - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : Just a very quick follow-up. First of all, on RCO, again, I would like to know if we can have the timing of the closing of the deal? Second, on Brazil, specifically, there have been a few options lately, but Arteris or Atlantia didn't bid for the asset for the new concessions awarded by the local authorities. So I'm wondering if there is any specific reason why you don't find the new options attractive? And the last question on ASPI, if you can disclose how the value of RAB is calculated in the new tariff model elaborated by the transport authority in Italy? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 28, 2020 / 3:30PM, ATL.MI - Q4 2019 Atlantia SpA Earnings Call

Question: Stefano Gamberini - Equita SIM S.p.A., Research Division - Analyst : Just 2 quick things. The first, regarding AP-7. So could you give us some color, if you can, regarding what could be the amount of this credit considering the current decline in traffic for Asesa? And if you already have some talks with the government for a solution, I don't know, an extension of the concession or some other solutions, even if the Supreme Court postponement any decision to 2021? The second question regarding Page 9. You have a series of proposal submitted to the government. Could you share with us where you are more ready to do some -- to have more flexibility? And which are on the other side, the items where you can change and fundamental in the negotiation with the government? I refer, in particular, regarding the early termination and so the Article 35 of Milleproroghe?